---
title: "BNY Lets Institutions Mint and Redeem the USDC Stablecoin Directly"
description: "BNY, the world's largest custodian bank, will let institutional clients create and cash out Circle's USDC stablecoin directly through its custody platform. It's another sign that big, regulated banks are wiring stablecoins into mainstream financial plumbing."
category: "Crypto"
category_url: https://boursel.com/category/crypto
author: "Kenji Nakamura"
published: 2026-06-29T16:43:40.000Z
updated: 2026-06-29T16:43:40.000Z
canonical: https://boursel.com/article/bny-lets-institutions-mint-and-redeem-the-usdc-stablecoin-directly
tags: ["bny", "usdc", "stablecoins", "circle", "institutional", "crypto"]
---
# BNY Lets Institutions Mint and Redeem the USDC Stablecoin Directly

BNY, the world's largest custodian bank, will let institutional clients create and cash out Circle's USDC stablecoin directly through its custody platform. It's another sign that big, regulated banks are wiring stablecoins into mainstream financial plumbing.

The institutionalization of crypto took another concrete step. **BNY** — the custody-and-services giant formerly known as BNY Mellon and the world's largest **custodian bank** — said it will let institutional clients **mint and redeem** Circle's **USDC** stablecoin directly within its digital-asset custody platform, [Cointelegraph reported](https://cointelegraph.com/news/bny-adds-usdc-minting-and-redemption-to-institutional-custody-platform). Clients can now hold, transfer, create and cash out the token without leaving the bank's regulated environment.

## What the jargon means

A **stablecoin** is a crypto token designed to hold a steady value — **USDC** is pegged to the US dollar and issued by **Circle**, backed by reserves of cash and short-term Treasuries. **Minting** is creating new USDC: a client deposits dollars, and matching USDC is issued. **Redemption** is the reverse: hand back USDC, get dollars. By plugging those functions into its **custody platform** — the secure infrastructure banks use to safekeep clients' assets — BNY lets big institutions move between dollars and USDC inside familiar, regulated rails.

This builds on an existing relationship: BNY has helped **custody the reserves** backing USDC for Circle since 2022, [as Circle has noted](https://www.circle.com/pressroom/circle-selects-bny-mellon-to-custody-usdc-reserves/). Now it's facilitating the transactions, not just guarding the backing.

## Why it matters now

The move reflects a broader shift Boursel has been tracking: **regulated financial institutions are racing to service the stablecoin economy.** After the US passed stablecoin legislation in 2025 establishing federal oversight of dollar-pegged tokens, the legal fog that kept big banks cautious has largely lifted — and custody banks, asset managers and exchanges are now competing to provide the infrastructure.

BNY's scale makes its involvement a notable signal: it oversees trillions of dollars in assets under custody and serves a large share of the world's biggest companies. USDC, for its part, is the **second-largest stablecoin**, with tens of billions in circulation. When an institution of BNY's stature treats stablecoin minting as a standard custody service, the message is that these tokens are moving from crypto novelty toward **mainstream payments and settlement infrastructure**.

## The bigger picture — and a caveat

This sits alongside JPMorgan's expansion of its own blockchain-settlement network, which Boursel covered earlier today. But there's an important distinction. **Stablecoins** like USDC are issued by a company (Circle) and backed by its reserves; **bank "deposit tokens"** (like JPMorgan's) are claims on money held at the bank itself. Both are competing to become the rails for moving digital dollars, and big banks are increasingly playing in **both** arenas.

A note of balance: not everyone is sanguine. The Bank for International Settlements has warned that stablecoins fall short as a true form of money and could pose risks if they scale without adequate safeguards — a debate Boursel has covered. Adoption is nonetheless accelerating, with surveys pointing to rising corporate use, especially for **cross-border payments**.

## The takeaway

For the financial system, the significance is infrastructural, not speculative: the machinery for moving money is being rebuilt, and the **incumbent custodians and banks** — not just crypto-native firms — are now central to it. BNY enabling direct USDC minting won't move token prices much. But it's another brick in a wall that's steadily being built: a financial system where regulated institutions, rather than offshore exchanges, handle the plumbing of digital dollars.

## Sources

- [BNY adds USDC minting and redemption to institutional custody platform](https://cointelegraph.com/news/bny-adds-usdc-minting-and-redemption-to-institutional-custody-platform)
- [Circle selects BNY Mellon to custody USDC reserves](https://www.circle.com/pressroom/circle-selects-bny-mellon-to-custody-usdc-reserves/)